Question

Trinh Technologies Company (TTC) has two intangible assets at the end of the year. 1. Signed a 5-year lease for an office on March 1. TTC immediately spent $ 35,000 for leasehold improvements. TTC estimated the leasehold improvements would last for 7 years. TTC moved into the office on April 1, after the improvements were completed. 2. TTC purchased a patent for $ 6,000 on June 1. The patent was registered with the Canadian Intellectual Property Office 8 years ago. TTC estimated that it would keep the patent for 8 years.
Requirements
1. Record the acquisition of the two intangible assets.
2. Calculate the amortization of each intangible asset at December 31.
3. Record the year-end adjusting entries.
4. What is the carrying value of each asset reported in the balance sheet?